Council questions golf course contract, irrigation and long‑term costs at Castlewood Park

Forest Lake City Council · November 26, 2025

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Summary

Council members pressed staff on the Castlewood management agreement, revealing a contract structure with a $50,000 profit guarantee and recent city CIP spending; staff estimated a potential $900,000 irrigation replacement and said the Parks Commission will audit the irrigation before recommending the CIP project.

Council members asked for more oversight and analysis of the Castlewood golf course management agreement on Tuesday as staff reported on finances and capital needs.

Public works/parks staff described a management contract that guarantees the manager up to $50,000 by year‑end (the city pays a “true‑up” if profit falls short) and splits profit above that threshold. Staff said through October the course was about $26,000 positive this year but noted that seasonal closures and simulator use complicate year‑end projections.

“Last year there was a profit of a little over $3,000 that was split,” staff said, adding that earlier years required true‑ups. Council Member Miller pressed whether the city could sell the course; city legal counsel said that because Castlewood is dedicated parkland any sale or change would depend on deed language and public‑benefit requirements and could be “tricky.”

Council members raised maintenance questions and capital needs: staff estimated about $80,000 in recent drainage CIP work and said a full irrigation replacement was in the CIP with a preliminary estimate of roughly $900,000. The Parks Commission asked staff to contract for an irrigation audit to determine whether complete replacement is necessary or whether partial repairs would suffice.

Council approved the Castlewood management consent item after discussion and directed staff and the Parks Commission to review lease/maintenance responsibilities and any larger capital plans.

Next steps: staff will provide the Parks Commission with an irrigation audit, bring cost estimates back as part of the CIP process, and clarify maintenance and cost‑sharing provisions in the management agreement.